§5011 Income tax credit for average cost of carrying excise tax

Summary

Gives a tax credit to certain buyers or holders of bottled distilled spirits. The credit equals the number of eligible cases you bought or held during your taxable year times the average tax‑financing cost per case for the most recent calendar year that ended before your taxable year. Eligible buyers are wholesalers with a Federal Alcohol Administration Act wholesaler permit who are not a state or local government, and people covered by section 5005 (but not eligible wholesalers) who store cases in a state or local government warehouse where ownership has not passed by an unconditional sale. The average tax‑financing cost per case is the interest that would accrue at the “deemed financing rate” over 60 days on $25.68. The deemed financing rate is the average of the corporate overpayment rates for the four quarters of the calendar year under section 6621(a)(1). A “case” means 12 bottles of 80‑proof 750‑milliliter each. To count cases in a lot, divide the number of liters by 9.